# Exhibit 2

USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 1 of 22

### NACWA Letter to Administrator Jackson June 27, 2011 Page 1 of 2

EXECUTIVE COMMITTEE

PRESIDENT Jeff Theerman Executive Director Metropolitan St. Louis Sewer District Saint Louis, MO

VICE PRESIDENT David R. Williams Director of Wastewater East Bay Municipal Utility District Oakland, CA

TREASURER Suzanne E. Goss Government Relations Specialist JEA (Electric, Water & Sewer)

Jacksonville, FL

SECRETARY Julius Ciaccia, Jr. Executive Director Northeast Ohio Regional

Sewer District Cleveland, OH

PAST PRESIDENT Kevin L. Shafer Executive Director Milwaukee Metropolitan Sewerage District Milwaukee, WI

EXECUTIVE DIRECTOR

Ken Kirk June 27, 2011

Honorable Lisa P. Jackson Administrator U.S. Environmental Protection Agency 1200 Pennsylvania Avenue, N.W. Washington, D.C. 20460 Ms. Gina McCarthy Assistant Administrator, Office of Air and Radiation U.S. Environmental Protection Agency 1200 Pennsylvania Avenue, N.W. Washington, D.C. 20460 Mr. Peter Tsirigotis Director, Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency Research Triangle Park, NC 27711 Richard Ossias, Esq. Associate General Counsel for the Air and RadiationLaw Office Office of General Counsel (Mail Code 2344A) U.S. Environmental Protection Agency 1200 Pennsylvania Avenue, N.W. Washington, D.C. 20460 Re: Supplement to May 24, 2011 Petition for Reconsideration and Stay of the Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Sewage Sludge Incineration Units; Final Rule, 76Fed

.Reg. 15372-15454 (March 21, 2011) Dear Administrator Jackson: On May 24, 2011, the National Association of Clean Water Agencies (NACWA) submitted a petition for reconsideration and stay of the EPA action titled “Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Sewage Sludge Incineration Units,” 76 Fed. Reg. 15372 (Mar. 21, 2011) (the “SSI Rule”). The SSI Rule establishes various emission limitations and other requirements under CAA section 129 applicable to sewage sludge incinerators (SSI). 

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### NACWA Letter to Administrator Jackson June 27, 2011 Page 2 of 2 This letter supplements our May 24 petition in order to inform you of recent events which increase theurgency for EPA to grant immediate reconsideration and stay of the SSI Rule. Enclosed are copies of information requests from the New York State Department of Environmental Conservation (NYSDEC) as received by the sanitationdistricts serving Albany County, the City of Buffalo, and the Town of Tonawanda, New York. Each of these sanitation districts is a member of NACWA and owns and operates at least one SSI that is subject to the SSI Rule. In the information requests, NYSDEC is seeking a certification committing each sanitation district either (1) to “cease operation” and “render[] inoperable” each facility’s SSIs by no later thanMarch 21, 2012, or (2) to upgrade each SSI as necessary to comply with the regulations NYSDEC will promulgate in order to implement the SSI Rule. NYSDEC asks the districts to submit these certifications byJune 30, 2011or justify why a later due date is necessary. The steps that NYSDEC is taking to begin implementing the SSI Rule strongly illustrate the imminent impact of the SSI Rule on the municipalities and local clean water agencies who incinerate biosolids. As we presented in our petition for reconsideration and stay, several of the SSI emission limitations are overly stringent, in part because EPA failed to account for the inherent variability of biosolids feed characteristics. Some municipalities predict that no viable control technologies exist that will allow them to incinerate in compliance with the rule. Other municipalities have indicated that they do not have the space at their treatment works to accommodate additional pollution control equipment. Without immediate action by EPA to stay the SSI Rule, even more municipalities like the three sanitation districts in upper New York State will be forced to choose now whether to abandon incineration or to commit to the uncertain path of trying to find the means and methods for complying with these legally flawed requirements. NACWA requests a meeting to discuss our concerns with the SSI Rule and EPA’s action on our petition for reconsideration and stay. We emphasize again the urgency with which EPA needs to take action on NACWA’s petition. Unless a stay of the SSI Rule is grantedin the very near future, we believe that permanent environmental harm and significant economic injury to a large number of municipalities will follow as communities are forced to make practically irreversible decisions regarding the future of biosolids management. We will be in touch with your office in the next few days to follow up on this request. Please contact me or Mr. Chris Hornback at (202) 833-9106 or chornback@nacwa.orgto discuss any questions regarding NACWA’s petition or this request. Sincerely,

Ken Kirk Executive Director Encl. cc: Nancy Stoner, U.S. Environmental Protection Agency 

### USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 3 of 22

### New York State Department of Environmental Conservation Division of Air Resources Bureau of Stationary Sources, 2nd Floor 625 Broadway, Albany, New York 12233-3254 Phone: (518) 402-8403 • FAX: (518) 402-9035 Joe Martens Website: www.dec.ny.gov Commissioner

May 31,2011

Mr. Glen Absolom Southtowns STP S-3690 Lakeshore Road Buffalo, NY 14219 Southtowns 

### STP 9144800012 Existing Incinerator / Federal Sewage Sludge Incinerator (SSn Unit Regulation 40 CFR Part 60, Subpart MMMM
Dear Mr. Absolom: As mentioned in Steve Johnson's May 21, 2011 phone call to you, the Environmental Protection Agency (EPA) published as a [mal Rule, 40 CFR Part 60, Subpart MMMM

­ Emission Guidelines and Compliance Times for Existing Sewage Sludge Incineration Units (Guidelines). You can view the final Rule, Fact Sheets and other technical support information (cost information for typical upgrades, etc to meet the Guidelines) at EPA's TTN website: www.epa.gov/ttn/atw/129/ssi/ssipg.html.
For your reference, 1have enclosed a copy ofthe EPA Fact Sheet which provides a general overview ofthe new SSI requirements. The new Guidelines establish mandatory limits for nine air pollutants: particulate matter (PM), sulfur dioxide (S02), hydrogen chloride (HCI), nitrogen oxides (NOx), carbon monoxide (CO), lead (Pb), cadmium (Cd), mercury (Hg), and dioxins/furans. The Guidelines also establish an opacity limit as well as very specific requirements for initial and annual performance testing, operator training, recordkeeping and reporting, and compliance monitoring,
In accordance with the federal Clean Air Act, New York State, through the Department ofEnvironmental Conservation (DEC) is required to implement the requirements ofthe Guidelines, and we are now trying to establish ifany existing SSI units in New York State intend to continue operation under the new Guideline requirements. 

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### Any facility that plans to continue operation ofan SSI unit will be required to:

• meet a retrofit compliance schedule that would be incorporated into a future State regulation, • obtain a Title V pennit, • be in compliance with the new Guidelines within three (3) years ofEPA's approval ofa New York SSI State Plan (which is due to EPA by March 21, 2012), or by March 21, 2016 whichever is earlier,
To assist the DEC in planning on how to address EPA's new SSI Guidelines, it is requested that you advise the DEC by June 30, 2011 ofyour plan to either upgrade your existing SSI unites) to meet the new Guidelines, or shutdown and render inoperable your SSI unites) no later than March 21, 2012, It 

### is imperative that the DEC receive a finn commitment regarding your future SSI operational plans, To assist you in this regard, I have enclosed a onepage certification fonn (Sewage Sludge Incinerator Unites)

- Notice ofOperational Intent) for your use in notifying the DEC ofyour intended plans. Ifyou need additional time (for investigation, analysis, etc.) and cannot respond by June 30, 2011, indicate on the fonn your reason and a projected response d'ate. Thank you for your attention to this matter. Ifyou have any questions, please contact Steve Johnson at (518) 402-8403, or your NYSDEC Regional office. Sincerely,

# ROW-~ Director, Bureau ofStationary Sources Division ofAir Resources Enclosures

cc: Regional Air Pollution Control Engineers Steve Johnson John Henkes

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### USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 5 of 22

### New York State Department of Environmental Conservation Division of Air Resources Bureau of Stationary Sources, 2nd Floor 625 Broadway, Albany, New York 12233-3254 Phone: (518) 402-8403 • FAX: (518) 402-9035 Joe Martens Website: vvww.dec.nygov Commissioner 

### Sewage Sludge Incinerator (SSI) Unites) Notice ofOperational Intent DEC ID#: 9144800012
Mr. Glen Absolom Southtowns STP S-3690 Lakeshore Road Buffalo, NY 14219 (Please report facility information as it exists on NYSDEC pennit) SSI Unit Manufacturer Model NamefNumber Type (MH or FB) Emission Point ID#

In response to NYSDEC's May 27, 2011 letter, be advised as follows: (Check one) 

### J I , authorized representative for Southtowns STP do hereby certify that the SSI unites) currently permitted at the above referenced facility will cease operation and be rendered inoperable no later than March 21, 2012. 

## o I , authorized representative for Southtowns STP do hereby certify that the SSI unites) currently permitted at the above referenced facility will be upgraded in accordance with the regulations to be promulgated by NYSDEC to comply with the requirements of federal 40 CFR Part 60, Subpart MMMM.
I , authorized representative for Southtowns STP

cannot respond by June 30 lb

, 2011 because ofthe following:

Authorized Representative: Title: Signature: 

# I Date:

Note: Please send the original of this completed form, CERTIFIED MAIL to: Robert Stanton P.E., Director, Bureau of Stationary Sources, NYSDEC, 625 Broadway, Albany, NY, 12233, and a copy to your local NYSDEC office, Regional Air Pollution Control Engineer, Division of Air Resources. 

### USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 6 of 22FACT SHEET FINAL STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES AND EMISSION GUIDELINES FOR EXISTING SOURCES: SEWAGE SLUDGE INCINERATORS ACTION • On February 21,2011, the Environmental Protection Agency (EPA) finalized new source performance standards (NSPS) and emission guidelines (EG) for new and existing sewage sludge incineration (SSf) units. The rule will reduce emissions ofair toxics and several of the common pollutants called criteria pollutants. The rules are expected to impact 204 units.

• The final rule will reduce emissions ofa number oftoxic air pollutants, including mercury, other metals and organic air toxics, which include dioxins/furans. Toxic air pollutants, also known as hazardous air pollutants or air toxics, are those pollutants known or suspected of causing cancer and other serious health effects

• A SS] unit is an incinerator or combustion device that is used to burn dewatered sewage sludge. SS] units are typically located at wastewater treatment facilities. FINAL REQUIREMENTS • The final rules cover two SSI subcategories based on the type ofincinerator: multiple hearth (MH) and fluidized bed (FB).

• Units incinerating sewage sludge at other types offacilities (e.g., commercial, industrial, and institutional) will be covered under different air pollution incineration standards.

• The rules establishes emission limits for nine pollutants emitted from the regulated SSI units: o mercury o lead 0 carbon monoxide o cadmium 0 dioxins/furans o hydrogen chloride 0 nitrogen oxides o particulate matter 0 sulfur dioxide

• The rules also require provisions for testing, monitoring, recordkeeping, reporting and operator training.

BENEFITS AND COSTS • EPA estimates that there are approximately 204 SSI units operating in the United States. The Agency expects that 155 ofthese units are currently meeting the emissions limits. Forty will need to install one or more air pollution control device. In the next five years, EPA estimates that there could be two new SSI unit constructed.

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### USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 7 of 22• These emissions reductions will lead to signi ficant annual health benefits. In 2015, this ruIe wiII protect pub!ic health from exposure to firie particles by avoiding: o	 2 to 6 premature deaths, o	 2 cases ofchronic bronchitis, o	 4 nonfatal heart attacks, o	 4 hospital and emergency room visits, o	 4 cases ofacute bronchitis, o 81 cases ofrespiratory symptoms o 320 days when people miss work, o 42 cases ofaggravated asthma, and o 1,900 days when people must restrict their activities.



### • EPA expects this rule will reduce nationwide emissions from 

### SST by: o	 4 pounds per year ofmercury, o 450 tons per year (tpy) ofacid gases (ie., hydrogen chloride and sulfur dioXide), o 58 tpy ofparticulate matter, and o 1.7 tpy ofcadmium and lead.

• EPA estimates that the value ofthe benefits associated with reduced exposure to fine particles are $21 million to $52 million in the year 2015.

• EPA did not provide a monetary estimate ofthe benefits associated with reducing exposure to air toxics or other air pollutants, ecosystem effects, or visibility impainnent. However, the rule would cut emissions ofpollutants that are ofparticular concern for children. Mercury and lead can adversely affect developing brains

- including effects on TQ, learning, and memory.



### • EPA estimates that all facilities will choose to continue to incinerate as a method ofdisposal. 

### EPA recognizes that should a facility choose an alternative method ofdisposal, that decision is based on local needs.

• Installing and maintaining controls for this rule is estimated to cost $18 million per year.

KEY CHANGES FROM PROPOSAL
• Key changes based on information and comments received on the proposal include: o clarifying the applicability to**stat~** that this rule applies only to sources that combust sewage sludge at wastewater treatment facilities treating domestic sewage sludge; o revising the subcategories for new multiple hearths (MH) to be**consiste~t** with the subcategory for existing MH; o revising the baseline emissions, costs, and impacts based on new information received. This revision resulted in a determination that the beyond-the-tloor emission limits for mercury for the MH subcategory were no longer cost-effective; and o revising the requirements for opacity to no longer require opacity for sources subject to parametric monitoring and annual testing.

ADDITIONAL ANALYSES

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### USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 8 of 22• The Clean Air Act (the Act) requires EPA to set a minimum emission standard for each regulated pollutant. The Act allows EPA to adopt emissions limitations and requirements that are more stringent than the minimum requirement. When considering more stringent standards, EPA must consider costs, non-air quality health and environmental impacts and energy requirements.

• EPA conducted an analysis to determine whether it was appropriate to finalize more stringent standards for pollutants (mercury and carbon monoxide) emitted from this industry as proposed. Based on information received from public commcnts and results ofEPA's final analysis, the Agency determined that a standard that is more stringent for certain pollutants emitted from multiple hearth incineration units would not be appropriate to finalize as indicated in the proposed standards.

SEPARATE BUT RELATED ACTIONS • EPA has finalized a rule that would reduce emissions oftoxic air pollutants from new and existing industrial, commercial, and institutional boilers and process heaters located at major source facilities. A major source facility emits or has the potential to emit 10 or more tons per year (tpy) ofany single air toxic or 2S tpy or more ofany combination ofair toxics.

• EPA has finalized a rule to reduce emissions oftoxic air pollutants from new and existing industrial, commercial, and institutional boilers and process heaters located at area source facilities. An area source facility has the potential to emit less than 10 tpy ofany single air toxic or less than 2S tpy ofany combination ofair toxics.

• EPA has also finalized a rule to reduce air toxics from Commercial and Industrial Solid Waste Incinerators (CISWI). This final rule reflects the Agency's final definition ofnonhazardous solidwaste.

• EPA has finalized a definition ofnon-hazardous solid waste to include sewage sludge. This determination establishes that facilities that burn sewage sludge will be regulated as incinerators under CAA section 129 rather than CAA section 112.

• EPA also will issue a notice announcing that it will "reconsider" certain aspects ofthe boiler and CISWl rules. The SSI rule is not part ofthe reconsideration. The final boiler and CISWl rules reflect reasonable approaches consistent with the requirements ofthe Clean Air Act. However, some ofthe issues identified in the comments on our April 2010 proposals raised difficult technical issues that the Agency believes would benefit from additional public involvement. EPA is in the process ofdeveloping a proposed rule that will request additional comment on: o specific elements ofthe final rules that would benefit from additional public review and comment, and o any provisions that EPA proposes to modify or add after more fully evaluating the data and comments already received.

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### USCA Case #11-1131 Document #1330427 Filed: 09/19/2011 Page 9 of 22EPA will fully evaluate any petitions submitted to the Agency requesting that we reconsider specific aspects ofthese rules. Additional issues may be added for reconsideration as appropriate. Through the reconsideration process, EPA intends to ensure that the standards wiII protect the health ofaII Americans and be practica Ito implement.

BACKGROUND • Section 129 ofthe Clean Air Act requires EPA to develop and adopt NSPS and EG for solid waste incineration units including SSI. This is the first time EPA has regulated SST units under section 129 ofthe CAA.

• EPA issued standards for other solid waste incineration (OSWI) units on December 16, 2005. The OSWl rule established numerical emission limits for very small municipal waste combustion and institutional waste incineration units.

• Following the finalization ofthe OSWI rule, EPA received a petition for reconsideration asking that SST and other units be covered under the 

## oswr rule. In January 2007, EPA took final action on the reconsideration and concluded that no changes to OSWl were necessary.

• Tn 2007, the U.S. Court ofAppeals for the District ofColumbia Circuit vacated and remanded the 2005 Commercial and Industrial Solid Waste Incineration (CISWI) definition rule.

• On June 4,2010, EPA's Office ofSolid Waste and Emergency Response (OSWER) proposed a new definition ofsolid waste. OSWER detennined that sewage sludge is a solid waste. This determination established that sewage sludge incineration will be regulated under CAA section 129 rather than CAA section 112. This final rule reflects the Agency's final definition ofnon-hazardous solidwaste.

FOR MORE INFORMATION • To download this final rule from EPA's website, go to: http://www.epa.gov/airqualit):Jcombustion/actions.html.

• Today's action and other'background information are also available either electronically at http://wVo.f\v.regulations.gov, EPA's electronic public docket and comment system, or in hardcopy at the EPA Docket Center's Public Reading Room. o The Public Reading Room is located at EPA Headquarters, Room Number 3334 in the EPA West Building, 1301 Constitution Avenue, NW, Washington, DC. Hours of operation are 8:30 a.m. to 4:30 p.m. eastern standard time, Monday through Friday, excluding federal holidays. o Visitors are required to show photographic identification, pass through a metal detector and sign the EPA visitor log. All visitor materials will be processed through an X-ray machine as well. Visitors will be provided a badge that must be visible at all times. o Materials for this proposed action can be accessed using Docket TO No. EPA-HQ-OAR2009-0559.

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### • For further information about the proposed rule, contact Ms. Amy Hambrick ofEPA's Office ofAir Quality Planning and Standards, Sector Policies and Programs Di:vision, Natural Resources and Commerce Group at (919) 541-0964 or bye-mail at 

### hambrick.amy@epa.gov.



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